Poundland owner inches closer to sale of discount chain
Poundland owner Pepco Group is closing in on the sale of the discount chain, with a possible deal expected as soon as this week.
Poundland owner Pepco Group is closing in on the sale of the discount chain, with a possible deal expected as soon as this week.
It is understood that the parent company is planning to inject a substantial eight-figure sum to finance the brand’s operations as part of a potential takeover deal with former Laura Ashley owner Gordon Brothers, Sky News reported.
Sources told the publication that no deal had been formally made yet, and that the business was still exploring other outcomes.
Related Story
Poundland is said to have drawn up restructuring plans that would see hundreds of store closures and significant rent reductions imposed across its 800-plus estate. It currently employs around 16,000 people.
One source said that it was plausible a deal could be announced as early as Wednesday morning.
Last month it emerged that Gordon Brothers was the frontrunner to take on the business – fending off competition from ex-Homebase owner Hilco and Modella Capital, the private equity firm behind Hobbycraft and The Original Factory Shop.
A Pepco spokesperson told Sky News: “The focus of the Group and advisers is currently on a potential sale of Poundland. This is an ongoing process, and no final decisions have been taken.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
